Last-minute tax strategies before the filing deadline

By Jesse Sanchez. 

A one-month tax countdown highlights key steps taxpayers can take before filing. 

As the April 15 tax deadline approaches, many taxpayers assume the opportunity to make meaningful financial adjustments has already passed. Financial professionals at Exit Stage Left Advisors say that assumption is often incorrect. In the final weeks before filing, several actions may still influence a taxpayer’s 2025 return, potentially lowering tax liability, preventing penalties or improving long-term financial planning. 

One of the most important opportunities involves retirement contributions. Taxpayers may still contribute to an individual retirement account (IRA) for the 2025 tax year before submitting their return. Contribution limits currently allow up to $7,000 or $8,000 for individuals age 50 and older. Depending on income eligibility, Roth IRA contributions may also be available. For self-employed individuals, retirement options such as SEP IRAs or Solo 401(k) plans can allow significantly larger contributions, creating additional opportunities to reduce taxable income before the filing deadline. 

Another commonly overlooked option is the Health Savings Account (HSA). Available to individuals enrolled in high-deductible health plans, HSAs allow taxpayers to make deductible contributions while also providing tax-free growth and tax-free withdrawals for qualified medical expenses. Contribution limits are approximately $4,150 for individuals and $8,300 for families, with an additional $1,000 catch-up contribution permitted for individuals age 55 and older. 

Taxpayers who bought or sold cryptocurrency during the year should also review those transactions carefully. Each sale or swap of digital assets may trigger a taxable gain or loss. Losses can offset gains without limit, and up to $3,000 may be deducted against ordinary income. Importantly, even exchanging one cryptocurrency for another can count as a taxable event. 

For individuals who need more time to complete their return, filing Form 4868 provides an automatic extension until October 15. However, the extension applies only to the paperwork. Taxes owed must still be paid by April 15 to avoid penalties. 

Finally, several tax credits may provide direct savings. Energy efficiency upgrades, electric vehicle purchases and qualified education expenses may all qualify for credits that reduce taxes owed dollar for dollar. Before submitting a return, taxpayers may also consider reviewing their records with the Internal Revenue Service to ensure no unauthorized filing has occurred and to help guard against potential identity theft. 

Learn more about last-minute tax strategies for reducing liability, penalties and strengthen financial planning before filing!